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A Look at Russia’s Manufacturing Activity in January 2018

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Russia’s manufacturing activity in January

According to Markit Economics, Russia’s manufacturing PMI (purchasing managers’ index) improved marginally between December 2017 and January 2018, to 52.1 from 52.0. The January figure met the market estimate of 52.0 and was the strongest reading since July 2017.

Factors affecting Russia’s manufacturing PMI in January were as follows:

  • production volume and output improved at a stronger rate
  • new business orders and factory output rose at a faster rate
  • export orders in the manufacturing sector rose
  • employment in the manufacturing sector contracted

Russia’s business sentiment index also strengthened to a four-month high in January 2018, and strong global growth drove demand for crude oil, boosting oil prices by 7.1% in January 2018. The United States Oil ETF (USO), which tracks the performance of crude oil, rose 8%. As crude oil is an important part of Russia’s economy, the economy improved.

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ETF performance

The VanEck Vectors Russia ETF (RSX), which tracks Russia’s economy, rose 10.7% in January 2018. The Direxion Daily Russia Bull 3X ETF (RUSL) rose 34.3%. In the next part of this series, we’ll analyze Russia’s service PMI in January 2018.

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